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TMI Blog2018 (9) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... to interfere with the order of the ld. CIT(A). Thus, this ground of appeal raised by the assessee is dismissed. Addition towards loan creditors - Held that:- The reason for non-filing of confirmation letter is that the promissory note itself is sufficient, however, the assessee has filed confirmation letters in respect of 09 loan creditors. Therefore, in our view, it is not correct to say that he is not aware about the value of the confirmation letter. Therefore, at this stage, this evidence cannot be admitted. Even confirmation letter filed by the loan creditor Mr. S. Venkateswara Reddy is having only Ac. 4.76 of land and he has given loan of 4.00 lakh, but he has not explained the source properly and genuineness of the transaction. Therefore, this cannot be considered at this point of time. Accordingly, the plea raised by the assessee is rejected. So far as merits of the case is concerned, the ld. CIT(A) has rightly deleted the addition in respect of 09 loan creditors, where confirmation letters are filed. So far as 24.00 lakhs is concerned, the assessee is not able to substantiate the creditworthiness of the loan creditors and genuineness of the transaction and therefore, the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndry creditors and asked the assessee to file confirmation letters. The assessee has not filed any confirmation letters before the Assessing Officer. Therefore, the Assessing Officer added the entire amount in the hands of the assessee. 8. On appeal before the ld. CIT(A), the assessee has not filed any evidence, therefore, he confirmed the order of the Assessing Officer. Even before us, no evidence with regard to sundry creditors has been filed. Therefore, we find no reason to interfere with the order of the ld. CIT(A). Thus, this ground of appeal raised by the assessee is dismissed. 9. Ground No. 4 relating to addition of ₹ 24.00 lakhs towards loan creditors. 10. Facts of this issue in brief are that in the assessment order, the Assessing Officer has noted that during the course of assessment proceedings, assessee was asked for the source of cash deposits made in the savings bank account. The assessee has submitted a list of loan creditors for ₹ 63.00 lakhs and the same amounts are deposited in cash in the bank account. To examine the genuineness of the loan creditors, the Assessing Officer requested to produce all the loan creditors for examination of their source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it could be noted from ITMR that appellant produced nine parties in response to summons issued by Assessing Officer. Sworn statements were recorded from them on 1001.2014. All of them submitted copies of photo identity cards like Ration cards I Aadhaar Cards, etc. to prove their identity. They submitted copies of land records confirming their extent of agricultural land holdings to support their contention of agricultural income and hence their capacity to lend. In their statements they admitted to have given loan to appellant as detailed below:- Sl. No. Name of the creditor Age Loan amount Rate of interest Extent of land holding 1. Sri Chityala Ramachandra Reddy 36 ₹ 2 lac Rs.1/- Interest Ac. 3.50 2 Sri Battu Venkateswarlu 60 ₹ 4 lac Rs.2/- Interest Ac. 12 3 Sri Chityala Yogi Reddy in the name of his wife - ₹ 4 lac ₹ 4 lac Rs.1/- Interest ₹ 1/- interest Ac.13 4 Sri Tatireddy Vengala Reddy 38 ₹ 4 lac Rs.1.50 Interest Ac.4 5 Sri Chityala Sandi Reddy in the name of his wife 55 ₹ 4.06 lac ₹ 4 lac Rs.1/- Interest ₹ 1/- interest Ac.5 6 Sri Kambalapalli Chandra Sekhar Reddy 31 S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by those who appeared in person on 10.01.2014. Though they agreed to produce the same before Assessing Officer on 17.01.2014, none produced the same. 2. There are variations in some cases in the quantum of principal and interest payable mentioned in the pronotes vis-a-vis their corresponding recorded statements. In the case of S.Punjabi Vs AClT[(ITAT, Madras) 62 TTJ 749], the Hon'ble Madras ITAT held as follows: "Confirmations letters filed in respect of some creditors - None were produced for examination - Did not ask Assessing Officer to issue notice u/s 131 - All are cash transaction Creditors are not Income Tax Payers - Confirmation letter says "out of past savings"- Addition upheld." As no further evidence was produced by appellant either before the Assessing Officer or during appellate proceedings, I hold that loan creditor claim for balance amount of ₹ 24,00,000/- (Rs.63,00,000 - ₹ 39,00,000) was not proved by three essential elements of (i) identity of creditor (ii) capacity of the creditor and(iii) genuineness of transaction. Hence, I confirm addition of ₹ 24,00,000/- as against ₹ 63,00,000/- made by the Assessing Officer. Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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